Which of the Following Statements Is False

question 56

Multiple Choice

Which of the following statements is false?

• A) The Fed has the legal authority to create money out of thin air.
• B) There is a direct relationship between the money supply and the required reserve ratio.
• C) The Fed can cause money to disappear into thin air.
• D) The federal funds market is a market in which banks can borrow money from other banks.

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Definitions:

Multiple Choice

A type of question or survey response option where the respondent selects a single answer from a list of possible options.

Focused Freewriting

A writing strategy where one writes continuously for a set period without worrying about grammatical correctness, aiming to generate ideas or overcome writer's block.

Brainstorming

A creative group problem-solving technique that involves the spontaneous contribution of ideas from all members of the group.

Clustering

A technique used in writing and brainstorming activities where ideas related to a central theme or topic are grouped together visually to organize thoughts and inspire creativity.